3.
Copyright-2013
Government of Odisha
Bhubaneswar
Published by
Planning & Coordination Department
Government of Odisha
This Report does not necessarily reflect the views of the Government of Odisha
All rights reserved. No part of this publication may be reproduced, stored or transmitted in any form
or by any means without the prior permission of the Government of Odisha.
Price : Rs 100/-
Prepared by Planning & Coordination Department
Bhubaneswar
Designed and Printed by New Concept Information Systems Pvt. Ltd.

4.
ODISHA STATE
Foreword
I am glad to know that the Planning & Co-ordination Department has
brought out the Odisha Economic Survey, 2012-13 with a view to provide
a clear idea of past performance of Odisha’s economy and its outlook for
the future.
The Odisha Economic Survey, 2012-13 analyses various aspects of the
economy of the State; provides useful information for the citizens to know
the status of the State’s economy and is a source of valuable feedback for
policy makers and others. The Odisha Economic Survey, 2012-13 looks at the State’s finances,
growth and structural change in the State’s economy. It also takes note of the efforts of the
State Government to bring perceptible improvements in the socio-economic conditions of
the people of Odisha. The state’s economy is on high growth trajectory from 2002-03 onwards.
Odisha has made outstanding efforts in reducing poverty by 20.2 percentage points from
57.2% in 2004-05 to 37% in 2009-10. This is the highest reduction in poverty by any state in
India from 2004-05 to 2009-10. The Odisha Economic Survey, 2012-13 also highlights the
challenges faced by, and opportunities available to, Odisha.
I sincerely hope that the Odisha Economic Survey, 2012-13 will be useful to policy makers,
academicians and others.
(NAVEEN PATNAIK)
iii
Economic Survey, Odisha: 2012-13

5.
Preface
The Odisha Economic Survey published by the Planning & Co-ordination
Department is a very useful document that attracts attention of
development practitioners, academics, researchers and others. It provides
a clear idea of past performance of Odisha’s economy and its outlook for
the future.
The Odisha Economic Survey, 2012-13 highlights the structural changes
in the State economy with a high growth trajectory in recent years. The
Service Sector is becoming more and more pronounced. As per “advance estimates” for
2012-13, the share of this sector in the real Gross State Domestic Product (GSDP) of the
State is 58.28 percent, that of the Industry Sector 24.23 percent and Agriculture Sector 17.49
percent. This has significant implications for generating more employment and livelihood
opportunities.
As per the advance estimate for 2012-13, Odisha’s economy has grown, in real terms at 200405 prices at the rate of 9.14 percent during 2012-13 over 2011-12. In recent years, Odisha has
witnessed faster poverty reduction. There has been a record reduction in poverty by 20.2
percentage points during the period from 2004-05 to 2009-10, which is highest among all
States in India.
There are, however, acute regional, social and gender disparities. This is a matter of serious
concern and has attracted attention of the Government. Development of backward
regions and that of the marginalised sections, i.e., Scheduled Tribes, Scheduled Caste and
women and children has been accorded a very high priority. Our Government has focus
on accelerated development of agriculture and allied sectors, irrigation, infrastructure
and human development sector including education, health, safe drinking water supply,
nutrition, sanitation as well as employment generation and livelihood sectors.
I would like to place on record my deep sense of appreciation of the contributions of
Prof. Tapas Kumar Sen, NIPFP, New Delhi in improving the Public Finance chapter of the
Economic Survey, 2012-13. The officers and staff of Planning & Coordination Department,
Finance Department and Directorate of Economics & Statistics have added their efforts to
this Survey. I hope Odisha’s Economic Survey, 2012-13 will be useful to various stakeholders
including legislators, policy makers, academics, researchers and others.
(MAHESWAR MOHANTY)
v
Economic Survey, Odisha: 2012-13

6.
Acknowledgement
Several persons and institutions have contributed to the preparation of the Odisha Economic
Survey, 2012-13. We are very grateful to Sj. Naveen Patnaik, Hon’ble Chief Minister, Odisha who
inspired us to prepare the survey in a professional manner. We are also grateful to Sj. Maheswar
Mohanty, Hon’ble Minister, Tourism & Culture, Planning & Co-ordination, who has encouraged and
guided us to complete this task in a time bound manner.
Shri B.K. Patnaik, Chief Secretary and Chief Development Commissioner, guided us through the
tedious process of preparation of the survey. Shri J.K. Mohapatra, Development Commissionercum-Additional Chief Secretary extended full support, guidance and intellectual inputs for this
assignment. Their efforts and support are gratefully acknowledged.
We are also grateful to Prof. (Dr.) Tapas Kumar Sen, NIPFP, New Delhi for his support and
contributions in improving the Chapter on Public Finance. Shri D.K. Jena, Joint Secretary and
Shri S. Rath, Under Secretary, Finance Department provided desired data for different components
of the survey, especially for the Chapter on Public Finance. We are grateful to them all for their
support.
This work would not have been possible without the active co-operation of my colleagues in Planning
& Coordination Department and Directorate of Economics & Statistics (DE&S). Shri H.M. Routray,
Ex-Director and Shri D. Behera, Director, Shri K.D. Sahu, Joint Director, Dr. Dillip Ray, Md. Firoz
Khan and Shri S.R. Mahanta, all Deputy Directors; Shri P.K. Dash and Miss Sujata P. Parida, both
Assistant Directors and Shri B.K. Nayak, SA in the DE&S made untiring efforts from beginning to the
end of the process of revision of the survey. Shri B.C. Mohapatra, Additional Secretary (Plan), Shri
A.K. Mishra, Director (DFC)–cum-Additional Secretary, Shri J.K. Mishra, Dr. N.K. Panda, Shri G.C.
Dash and Smt. J. Mohapatra, all Joint Directors, Shri D. Das Mohapatra, Shri A.C. Sarangi, Shri B.N.
Dash and Smt. S. Das, all Deputy Directors and others from Planning & Co-ordination Department
also assisted in varying degrees. Shri C.R. Satapathy, Deputy Director, Shri B.K. Sahu, Specialist
(MIS), Shri N. Mishra, Chief Accounts Officer and others from Poverty and Human Development
Monitoring Agency (PHDMA) also made untiring efforts and assisted at different stages of this task.
PHDMA funded the entire exercise and shared other responsibilities for completion of the task.
M/s New Concept Information Systems Pvt. Ltd. helped us in cover and layout design, typesetting
and printing of this document. We sincerely thank them all for their cooperation in finalising this
document in a time bound manner.
The process of preparation of this report has been an interactive and enriching experience. We hope
this report will be helpful to all those, who intend to use it. We welcome suggestions for further
improvement of this document.
(R.V. Singh)
Officer on Special Duty
Planning & Coordination Department, Government of Odisha
vii
Economic Survey, Odisha: 2012-13

30.
Chapter 1
Overview
Sundargarh
Jh
uda
arsug
Mayurbhanj
Deogarh
Keo
njh
ar
la
Ba
sor
e
Na
ba
ran
Bargarh Sambalpur
Bhadrak
Sonepur
Angul
Dhenkanal Jajpur
ra
pa
Boudh
dra
n
Bolangir
Cuttack
Ke
Nayagarh
da
Jagatsinghpur
or
Kh
Bhubaneswar
Phulbani
Puri
Kalahandi
Ganjam
gp
ur
Rayagada
Gajapati
Nuapada
Landmass: 1, 55,707 sq km
Districts: 30
Subdivisions: 58
Tehsils: 317
Community Development Blocks: 314
Urban Local Bodies: 107
Gram Panchayats: 6,236
Villages (Inhabited): 47,529
Villages (un-inhabited): 3,820
Villages (total): 51,349
Koraput
Malkangiri
1.1 Overall Macro Scenario
Odisha’s economy in 2012-13 has impressively
withstood the continuing slowdown in economic
growth in previous years. Several factors have
contributed to the continuing economic slowdown in world economy as well as in national
economy since 2008-09. In India, inflation
has remained high. This has raised interest
costs for investors as a result of which private
investment has slowed down considerably.
Odisha’s economy suffered a severe drought
which caused negative growth of agriculture
and its allied sectors during 2011-12. However,
the State economy continues to be on a high
growth trajectory. Diversification of economic
activities has led to a visible structural shift from
an agriculture based economy to an industry-led
and service-led economy in Odisha.
The State economy has witnessed high growth
rates during the last decade. In real terms and
at 1999-2000 prices, Odisha reported an average
annual growth rate of 9.51 percent for the 10th
Five Year Plan against a target of 6.20 percent.
The economy grew in real terms at 2004-05
prices at the rate of 8.23 percent during the 11th
Five Year Plan. The anticipated growth rate of
Odisha is estimated to be 9.14 percent in 201213 as per advance estimates.
1
Overview

31.
In terms of real per capita income, the State
has lagged behind the national average ever
since independence. In 1950-51, Odisha’s real
per capita income was about 90 percent of the
national average. However, it began to slide
down thereafter and in 2002-03, it came down
to about 61 percent of the national average. This
long-term falling trend in real per capita income
has not only been arrested, but reversed as well
since 2004-05. The State per capita income
has started rising and the gap with the average
national per capita income is reducing steadily.
With the change in magnitude and composition
of domestic product and such other related
factors like employment and investment
etc., Odisha’s economy shows the sign of an
expanding economy with sectoral shift in GSDP.
There is transformation of the State’s economy
from agriculture based to industry and serviceled economy. As per 2012-13 advance estimates,
the service sector is expected to be about 58.3
percent of the Gross State Domestic Product
(GSDP) followed by industry (24.2 percent)
and agriculture (17.5 percent) in real terms at
2004-05 prices. The high growth rates recorded
by the State in the 10th and 11th Five Year Plans
are mainly due to high growth registered by
the industry sector and the service sector.
The agriculture sector has also performed
reasonably well though the performance of this
sector continues to be highly volatile mainly
due to adverse impact of natural shocks such
as cyclones, droughts and floods. The service
sector has been growing in a comparatively
stable manner.
Among the districts, as per latest estimates of
District Domestic Product for 2009-10, the share
of Gross District Domestic Product (GDDP) to
GSDP of Odisha in Sundargarh was highest with
8.72 percent followed by Khorda 7.34 percent
Cuttack 7.08 percent. In 2009-10, the real per
capita Net District Domestic Product (NDDP)
at 2004-05 prices was highest for Jharsuguda
and lowest for Nabarangpur district.
As census data shows, the workers’ Population
rate in Odisha at 38.79 percent was slightly
lower than 39.1 percent at the national level
in 2001. Compared to the 1991 Census,
the share of marginal workers in the total
workforce increased substantially from 14
percent in 1991 to 33 percent in 2001, while
the share of main workers declined from 87
percent in 1991 to 67 percent in 2001. The
share of the main workers in the agricultural
sector (cultivators and agricultural workers)
declined from 73 percent in 1991 to 58
percent in 2001. This indicates that although
the majority of population in the State still
depends on agriculture directly or indirectly,
the State economy has been diversifying and
there is a shift moving agricultural sectors
away to non-farm sectors.
As per the NSS data, the rate of unemployment
in the State has fallen lately - from the 61st round
(July 2004-June 2005) to the 64th round (July
2007-June 2008). This stands true for both rural
and urban areas and among casual workers and
those who have full time jobs. However, the State’s
unemployment rate is higher than the national
rate of unemployment. The share of employment
in the public sector continues to be higher than
that in the private sector, although the latter has
shown steady increase. It is, however, heartening
to note that the share of women employees in
the organised sector has been steadily increasing
and stood at 16.2 percent in 2010.
The cost of living in rural Odisha is one of the
lowest in the country. In the past, the cost of
living in urban Odisha also used to be lower
than in the rest of India. This is, however, no
longer the case.
1.2 The Agriculture Sector
The agriculture sector includes agriculture,
animal husbandry, fisheries and forestry subsectors. The share of this sector in the State’s
GSDP has been declining over the years and is
expected to be 17.5 percent in 2012-13 (advance
estimate). Despite continuous reduction of the
sector in Odisha’s GSDP, this sector continues to
be vital for the State. It still provides employment
and sustenance, directly or indirectly, to more
than 60 percent of the population. In this sense,
the agriculture sector is still the mainstay of
2
Economic Survey, Odisha: 2012-13

32.
Odisha’s economy. It suffers from frequent
natural calamities like cyclones, droughts and
flash floods. Despite wide annual variations
in its growth, the agriculture sector expects to
grow in real terms at 2004-05 prices, at a rate of
16.1 percent during 2012-13.
The total food grains production has generally
been fluctuating. It was 63.16 lakh tonnes in
2011-12 as compared to 76.19 lakh tonnes in
2010-11. Paddy still constitutes more than 90
percent of the total production of food grains
and continues to be the dominant crop in
Odisha, though in terms of acreage, there has
been a gradual shift from paddy to cash crops.
Though paddy productivity has been slowly
increasing and is of the order of 21.97 quintals/
ha in 2011-12, it is much less than the national
average.
It is heartening to note that the coverage of
area under High-Yield-Variety (HYV) paddy
has increased till the end of 2010-11. However,
during 2011-12, the area as well as production
under HYV paddy has declined by 1.02 percent
and 14.0 percent respectively. During 2011-12,
the yield rate of HYV paddy was 23.35 qtls/ha
as compared to 26.89 qtls/ha in 2010-11. The
cropping intensity of Odisha has increased from
158 to 166 during the same period. Some districts
such as Sonepur have reported much higher
yield rates of HYV paddy to the tune of 32.87
quintals per ha. These positive developments
augur well for the overall improvement of the
agriculture sub-sector and increase in food
grain production in Odisha.
Inadequate and erratic irrigation facilities
still remain a major constraint for improving
agriculture and agricultural productivity.
Irrigation intensity in the State was only 31
percent in 2006-07 in comparison to the all-India
average of 44 percent. However, the situation
in this regard has been gradually improving.
With a view to assuring more irrigation facilities
as quickly as possible, the State Government
launched in 2009-10 two innovative irrigation
schemes, i.e., (i) construction of check dams
and (ii) sustainable harvesting of groundwater
through installation of bore wells on a
massive scale. Although there is considerable
improvement in the use of fertilisers and other
inputs, the rate of fertiliser use and other inputs
in the State still remains lower than the national
average. But fertiliser consumption in Odisha
during 2011-12 has marginally decreased from
to 62.24 kg/ha as against 62.80 kg/ha during
2010-11.
1.3 The Industry Sector
In this survey, the industry sector has been
defined to include manufacturing, mining and
quarrying and electricity-gas-water supply.
The sector contributes about 25 percent share
to Odisha’s GSDP in real terms. However, the
share of this sector is expected to strive to 24.2
percent as per advance estimates for the year
2012-13 as it is expected to grow at a very low
rate of 2.5 percent during 2012-13. This implies
that the sector has been hit hard due to the
global economic slowdown, disruption and
other mining activities factors. The share of the
manufacturing sub-sector is expected to be 63.4
percent and that of the mining and quarrying
sub-sector, 24.3 percent.
Most large-scale industries in Odisha are
mineral-based. In producing steel, Odisha
retains 10 percent of the total capacity of the
nation, while it has 25 percent of total ironore reserves in the country. Odisha has been
receiving heavy investments in the industrial
sector in recent years. There are new potential
entrants such as Vedanta, Jindal and Posco
into this sector in Odisha. If and when these
investments fully materialise, the steel
producing capacity of the State will improve
substantially and Odisha will grow at a much
faster rate.
It is not so widely known but Odisha occupies
the first place in the country in aluminium,
both in terms of production capacity and actual
output. This has happened after NALCO and
Vedanta Aluminium Limited (VAL) have started
to produce aluminium. Aluminium production
in India is concentrated within four big plants,
two of which are in Odisha. In 2010-11, total
aluminium production in Odisha was 51
3
Overview

33.
percent of the total production by all the four
big plants.
The number of Micro, Small and Medium
Enterprises (MSME) has been increasing over
time. During 2011-12, the maximum number
of MSMEs was set up in Sundargarh district
followed by Cuttack, Khorda and Ganjam.
Among manufacturing units, the largest number
of MSME units belongs to the food and allied
sector. Industrial sickness continues to be a
problem among MSMEs, but during 2010-11, no
new sick unit was reported. The handicraft and
cottage industry in Odisha exhibits a declining
trend in terms of the number of units as well as
employment generation.
The mining sector contributed on average
about seven percent of real GSDP of Odisha
during the 11th Five Year Plan. However, its share
is being streamlined during the last two years.
During 2011-12, the share of this sub-sector
was 6.4 percent and in 2012-13, it is expected to
be only 5.9 percent. However, being a favoured
investment destination of global investors,
this sub-sector seems poised for rapid growth.
In terms of the total value of mineral output,
Odisha ranks the highest in the country and
its share is increasing. This sub-sector has
been increasingly employing capital intensive
and labour saving technologies with a view to
enhancing its global competitiveness.
1.4 The Service Sector
This sector comprises of sub-sectors such
as banking and insurance, real estate, public
administration, trade, hotels and restaurants,
construction, transport and communications
and other services. This sector dominates the
State’s economy, its share in real GSDP being
about 58 percent in recent years and has been
growing at a higher rate in a comparatively
stable manner. This sector expects to have a
share of 58.3 percent in Odisha’s GSDP and to
grow at a rate of 9.1 percent during 2012-13 as
per advance estimates.
As per quick estimates 2011-12, the community,
social and personal services sub-sector
contributed 13.55 percent, the trade, hotels and
restaurants sub-sector 13.61 percent, financial
and insurance services sub-sectors 11.67
percent, construction 9.07 percent and other
services sub-sector 9.56 percent in the State’s
GSDP in real terms. As per advance estimates
for the year 2012-13, the trade, hotels and
restaurants sub-sector is expecting to dominate
the service sector contributing to it about 24
percent share. It is followed by the transport,
storage and communication sub-sector that
may contribute about 17 percent, construction
sub-sector 15 percent and other sub-sector
services about 16 percent to the service sector.
The banking and insurance sub-sector is
expected to contribute about 11 percent to the
service sector. However, it provides invaluable
indirect benefits to the economy in the form of
financial infrastructure. The average population
serviced by banks is roughly equal to 15,000,
which is better than that in many states in
India. It is a fact worth mentioning that about
79 percent of all bank branches are located in
rural and semi-urban areas.
It is heartening to note that the growth rate of
total bank deposits in the State is rising. Odisha
is catching up with the nation in terms of per
capita bank deposits in commercial banks.
Co-operative banks mainly focus on rural areas
and the agriculture sector. For all types of banks
operating in the State, the recovery rate stands at
about 62 percent in 2011-12. Recovery position
of bank loans needs to be improved.
Activity in the construction sector is a symbol
of capacity and infrastructure-building in a
region. The share of the construction sub-sector
in Odisha’s GSDP in 2012-13 expected to be 8.67
percent. This sub-sector is also important from
the employment perspective. It absorbs a lot
of casual workers. However, despite the high
growth of Odisha’s economy in recent years,
this sub sector recorded a modest growth rate
of 4.41 percent per annum during recent years.
Tourism has a huge growth potential in Odisha,
and being a labour-intensive activity, it has
the capacity to generate employment on a
large scale. Yet, it remains less developed in
4
Economic Survey, Odisha: 2012-13

34.
comparison to other states. The absolute
number of tourists to the State has been growing
and it is heartening to note that the growth rate
is the highest for tourists from within the State.
The share of foreign tourist arrival to the state is
negligible i.e., below one percent to total foreign
tourist arrival at all India level.
It is worth noting that the hotel industry – in
terms of its contribution to the State’s GSDP
has grown consistently since independence
and its growth rate has improved in the last
decade. However, its capacity, measured by
the number of rooms and beds, has not kept
pace with the growth rate of tourists in the
State. This implies that the growth of this
sector stems from a higher rate of utilisation.
1.5 Infrastructure
The importance of good infrastructure for
accelerated development and higher economic
growth is well recognised. Odisha is deficient
in infrastructure and there is a felt need for
substantially improving the extent and quality of
infrastructure in the State. The State Government
has rightly focused on Bijli, Sadak and Pani.
Odisha’s pioneering power sector reforms are
well known. In comparison to other states, the
availability of power in Odisha is better and
continues to improve though transmission and
distribution losses are still a major concern.
This aspect, therefore, needs immediate
attention. It is heartening to note that the
State has embarked upon an ambitious CAPEX
programme to substantially improve its grid
infrastructure.
The demand for power in Odisha has been
rising at a faster rate. Over 80 percent of villages
in Odisha are now electrified. This situation is
likely to further improve soon through project
works under the Rajiv Gandhi Grameen
Vidyutikaran Yojana, Biju Gram Jyoti and
Biju Saharanchal Vidyutikaran Yojana. Many
alternative energy programmes and incentive
schemes are in progress. In spite of the fact that
demand for power in Odisha has been rising,
the state has had a consistent surplus. Seventy
percent of the power consumers belong to rural
areas. They consume 23 percent of the total
consumption of power. Domestic consumers
comprise more than 90 percent of the total
consumers and they consume about 30 percent
of the total consumption.
In the transport sub-sector, road density in
Odisha is better than the all-India average.
But the State lags in surface-road density. This
is again likely to change soon, as the Pradhan
Mantri Gram Sadak Yojana and Bharat Nirman
Yojana build all-weather surface roads. The
State has also taken several initiatives to extend
the spread of good quality roads and to improve
the road surface quality throughout the State.
An ambitious programme for increasing the
number of bridges and cross drainage works
has been undertaken to ensure all weather
connectivity for remote habitations. Railway
density in the State is 15 km per thousand sq km
of area, which is below the national average of
20 km. The cargo shipment activity at Paradeep
Port has shown consistent growth despite the
recent global recession. In May 2011, Dhamra
port started commercial operations. Gopalpur
Port is being operated by private developers.
Commercial operation of the port has been
suspended as construction work for all weather
port has been started.
In the field of posts and tele-communications,
though tele-density (equal to the number of
telephone connections per 100 population)
has grown rapidly, it is yet to catch up with the
national average. The over all tele-density of
the state by the end of 2011 was 63.25 percent
as against the all India figures of 76.86 percent
but in case of urban tele-density, Odisha is far
better than the all India level (Odisha- 212.20
percent, all India- 167.46 percent). By the end of
2011, the percentage of rural phones in the state
was 43 percent as compared to 34 percent at an
all India level. Cell phones constitute about 75
percent of total telephone connections in the
State. In the State, postal density is higher than
the national average.
The State has undertaken massive steps to
improve the use of information technology,
5
Overview

35.
especially
in
public
administration.
E-governance is encouraged and enforced at
various levels. Two software technology parks
are in operation: one in Bhubaneswar and the
other in Rourkela. Their presence results in
more efficient use of information technology in
the private sector.
1.6 Poverty
Poverty has been viewed in this report as a
multi-dimensional concept. Though there was
hardly any poverty reduction in the State in
1990s, Odisha has been able to reduce poverty
at a faster rate in recent years. As per estimates
made by the Planning Commission, poverty
reduced by 7.25 percentage points from 19992000 (55th round of NSS) to 2004-05 (61st round
of NSS, mixed recall method). This was in line
with the State’s development strategies that
targeted a seven percentage point reduction in
poverty during the 10th Plan.
It is heartening to note that as per recent
estimates made by the Planning Commission
poverty in Odisha has declined by 20.2
percentage points from 57.2 percent in 200405 (61st round of NSS) to 37 percent in 2009-10
(66th round of NSS). This is the highest poverty
reduction by any state in India in 2009-10.
Poverty declined in all NSS regions and all
social classes of Odisha including Scheduled
Tribes, (STs) Scheduled Castes (SCs), Other
Backward Classes (OBC) and others. This
implies inclusive growth in Odisha. The extent
of poverty in southern and northern regions as
well as among ST and SC communities is still
high and remains a matter of concern.
The State witnesses wide regional and social
disparities in development. All regions have
not developed uniformly. With a view to
addressing the problem of regional disparities
and expediting development of interior
tribal dominated districts, the Government
has implemented a series of development
programmes such as Revised Long Term Action
Plan (RLTAP), Biju KBK Plan, Biju Kandhamal
O Gajpati Yojana, Gopabandhu Gramin Yojana
(GGY), Backward Regions Grant Fund (BRGF)
and Western Odisha Development Council
(WODC). The Funding for RLTAP and BRGF
has been provided by Government of India.
With support from Government of India, the
State has launched a new initiative, called
Integrated Action Plan (IAP) in 78 blocks of
18 tribal and backward districts of Odisha.
These development initiatives aim at faster
development of the backward regions of the
State.
1.7 Social Sectors
Social sectors have gained importance as the
world development community has paid greater
attention to the concept of human development
and attainment of Millennium Development
Goals (MDG). These sectors include education,
health, safe drinking water, sanitation as well as
development of the marginalised groups and
backward regions.
The State’s achievements in social sectors
have been impressive in recent years. In
2011, the overall literacy rate (73.45 percent)
in Odisha was close to the national average
(74.04 percent). Of late, the enrolment ratio
in elementary (primary and upper primary)
schools has substantially increased.
The
dropout rates at the primary level have come
down sharply from 41.8 percent in 2000-01 to
0.43 percent in 2011-12 at the primary level
and at the upper primary level from about 57
percent in 2000-01 to 3.07 percent in 201112. The school infrastructure has also been
substantially improved during the recent years.
Several initiatives have been taken by the
Government to improve literacy levels and
quality of education. With a view to improving
literacy levels among ST and SC communities,
particularly among girls, the State has been
establishing hostels for ST and SC students. At
present, 3,448 hostels including 1,548 primary
school hostels in ITDA Blocks and 1,003 ST
girls’ hostels are functioning in the State and
another 1,383 hostels are under construction.
In addition, 55 hostels (44 for SC girls and 11 for
SC boys) under Babu Jagjivan Ram Chhatrabas
6
Economic Survey, Odisha: 2012-13

36.
Yojana and 30 ST hostels for girls and boys
under CSP scheme are under construction.
On completion of these, about 3.5 lakh SC
ST students can be accommodated in these
hostels.
A large number of vocational and technical
institutions have come up during the last few
years and help equip the youth with employable
technical and soft skills. This has been possible
through encouragement and support from the
Government. National level institutes like IIT
Bhubaneswar, National Institute of Science
Education and Research, Central University at
Koraput and National Law University at Cuttack
have been set up in the mean time.
In the healthcare sector, the Government
has taken steps to bring about considerable
improvement in health infrastructure and
delivery and accessibility of healthcare services
in the State. However, there is still a lot to be
done. The basic demographic variables present
a mixed picture. The crude birth rate (CBR) in
the State is 20.1 against the national average
of 21.8 in 2011, but the crude death rate (CDR)
stood at 8.5 compared to 7.1 for the country. Life
expectancy at birth in the State for men was 64.3
years and 67.3 years for women during 201115 which is lower than the national average of
67.3 years and 69.6 years respectively. Infant
mortality rate (IMR) has stepped down to 57
which is the highest at the national level along
with Uttar Pradesh in 2011 while IMR at the all
India level during 2011 stood at 44. The State is
expected to narrow down this gap in the next
projection period of 2011-15.
People of Odisha suffer from multiple diseases.
The Government has focused attention on the
panchvyadhi, i.e., five most prevalent diseases:
malaria, leprosy, diarrhoea, acute respiratory
infections and scabies that contribute to about
70 percent of patient load. The Panchvyadhi
Chikitsa scheme is in operation since 2001
to provide free treatment and medicines for
these diseases. The scheme has also prescribed
clinical protocols to be followed by all doctors
and public health institutions. In KBK and other
tribal districts, mobile health units have been
placed in service to provide health services to
the people in outreach mode in remote areas
where connectivity is poor and the posts of
doctors and other health personnel remain
vacant. A number of new health initiatives,
including NRHM, ASHA and other health
development programmes, have been launched
in the State. Improvement in people’s health
and hygiene awareness, in their general health
condition and better availability of healthcare
services account for improvements in several
health indicators including IMR, maternal
mortality rates (MMR), institutional deliveries
and immunisation services.
During 2007-09, in Odisha, MMR was 258 per
1,00,000 live births, compared to 212 in India.
There has been an improvement in women’s
health in recent times. Increasingly, a greater
number of pregnant women are receiving antenatal care (ANC) and post-natal care (PNC).
Institutional deliveries have increased from
about 37 percent in 2005-06 to 84.8 percent in
2010-11. The pregnancy burden of women in
the State is lower than that of their counterparts
in the country. During the year 2010, the
General Fertility Rate (GFR) in Odisha stood at
83.9 percent compared to 75.3 percent at the all
India level. Though IMR in the State declined
from 96 in 2000 to 57 in 2011, it is still very high
as compared to 44, at an all India level.
Initiatives and achievements taken by National
Rural Health Mission (NRHM) are to be credited.
Various government health programmes have
brought down the disease burden in the State.
Leprosy has declined to less than one percent
per 10,000 population and filaria has been
controlled. Malaria is endemic in some parts
of the State, but malaria slide positivity rate
(percentage of slides found positive among
those examined) has declined from 8.18 to 5.39
between 2005 to 2012 (Oct 2012). HIV positive
cases have increased alarmingly from 312 in 2002
to 24,519 in 2011-12. This is a matter of concern.
Odisha’s performance has been satisfactory
in respect of access to safe drinking water.
The coverage of households having access to
safe drinking water was 94.8 percent as per
7
Overview

37.
the 2011 Census. The Integrated Management
Information System (IMIS) reports that 2.7
percent rural habitations in Odisha were
not covered under drinking water supply
programmes in 2009. As per 2011 Census,
about 78 percent of all households do not
have sanitation facilities in their premises. The
Total Sanitation Campaign (TSC) has been
implemented to instal toilets in rural areas
and encourage people to improve sanitation
conditions.
Physical achievements under
this programme have, however, not been
encouraging. By 2011-12, only 54 percent
households, 98 percent schools, 95 percent
anganwadis and 14 percent sanitary complexes
were covered under the programme.
Malnutrition among children, mothers and old,
infirm and destitute persons is a serious problem
in the State. The Government has implemented
various welfare programmes for them. These
include the Integrated Child Development
Scheme (ICDS), rehabilitation of cured leprosy
patients, emergency feeding programme and
heavily subsidised rice at the rate of Rs.1 per
kg. Besides, pension schemes like the National
Old Age Pension (NOAP), Madhu Babu Pension
and National Family Benefit schemes are in
operation to provide social security to the poor,
old and destitute.
Like elsewhere in India, there are gender
disparities in Odisha with respect to several
human development indicators. Only sixtyfour percent of the female population is literate,
in comparison to about eighty two percent
of the male population in Odisha. The male
literacy rate in Odisha is little higher than the
national level, while female literacy rate is
marginally lower. Women constitute about 45
percent of the total workforce in Odisha. The
employment of women in the organised sector
has, however, been rising in recent years. The
present strategy of the State to empower and
develop women is a step in the right direction.
About 4.69 lakh Women Self-Help Groups
(WSHGs) with 56.27 lakh members have been
organised with support from the Mission Shakti
programme. The State Commission for Women
works towards protecting the interests of
women and preventing violence against them.
The Odisha State Social Welfare Advisory Board
(OSWAB) provides grants for welfare of women
and children through voluntary organisations.
Schedule Tribes Schedule Castes communities
are large marginalised sections of society. Their
development has received focused attention by
the Central as well as the State governments.
The Tribal Sub-Plan has been operating in the
State with greater focus on tribal dominated 118
blocks of the State. Special Central Assistance
(SCA) is provided for accelerated development
of tribal communities including Particularly
Vulnerable Tribal Groups (PVTG).
1.8 Public Finance
The State has made several efforts to stablise
and improve its finances. As a result, the State
finances have shown considerable stability
since 2004-05 despite fiscal stress because of
economic slow down in recent years and the
effect of revision of salary and wages of the state
employees on account of the implementation
of the sixth pay commission. Most monitorable
fiscal indicators have turned favourable.
Revenue deficit has been eliminated since
2005-06.
Fiscal deficit has been reduced
below the prescribed limit. A fiscal space has
been created to liberally finance development
programmes. The main task, however, is to
utilize development funds prudently and
properly for faster development.
The fiscal strategy of the State aims to raise
capital outlays substantially. A cautious but
determined push is needed to increase capital
expenditure for faster and effective economic
development. The development impact of
government expenditures depends heavily on
these expenditures reaching the citizens. It is
heartening to note that the capital expenditure
has been on the rise over the period. The capital
outlays have increased from 1.22 percent of
GSDP in 2005-06 to 2.08 percent of GSDP in
2011-12.
The debt burden has been substantially reduced
in recent years. The debt-GSDP ratio has been
8
Economic Survey, Odisha: 2012-13

38.
brought down from 55.92 percent at the end
of 2002-03 to a more sustainable level of about
17.87 percent at the end of 2011-12. This has
become possible for two main reasons. First, the
State has not resorted to market borrowings since
2006-07. Second, fiscal reforms and debt writeoff mandated by the Finance Commission have
been effective as a part of the fiscal prudence
shown by the State.
The State has also taken several steps to
strengthen appropriate institutional measures
for more efficient management of public
finances. These measures include maintenance
of capital assets through a well conceived annual
management plan, cash management system to
reduce inefficient and ineffective expenditures
and to avoid rush of expenditure in the last
quarter of the financial year, improved tax
management and treasury management, zerobased budgeting with focus on completion of
projects and other measures, and introduction
of outcome budgets in a phased manner and
system of better monitoring of utilization of
public funds for public purposes in a phased
manner.
9
Overview

39.
Chapter 2
Odisha’s Economy: A Macro Glance
2.1 Aggregate Income
Odisha’s economy is expected to rebound strongly
in 2012-13 with an anticipated growth rate of
9.14 percent as per the advance estimates of
Gross State Domestic Product (GSDP) of Odisha
for 2012-13. The higher growth of the State’s
economy in the current year can be attributed
to the higher estimated growth rates of 16.11
percent under the agriculture sector and 10.09
percent under the service sector estimated in
real terms at 2004-05 prices during 2012-13, over
the previous year. The service sector indicates
robust growth rates in its sub sectors like trade,
hotel and restaurants (12.41 percent), transport
(12.47 percent), communications (17.60
percent), banking insurance (18.57 percent)
and public administration (15.39 percent)
during 2012-13. Besides this, the agriculture
animal husbandry sub-sector could achieve a
record growth rate of 19.87 percent in 2012-13
6
9.14
7.50
4.55
8
7.75
10
4.92
12
5.68
Growth Rate (Percent)
14
10.94
12.85
Figure 2.1: Real Growth Rates of GSDP of
Odisha, 2005-06 to 2012-13 (Advance)
4
2
0
9
8
1
6
7
0
12 2-13
6-0 07-0 08-0 09-1 10-1
5-0
11
0
00 200
0
01
0
20
2
2
2
2
2
20
Source: Directorate of Economics and Statistics, Odisha
with bumper crop production. The growth
rates of Odisha’s economy between 2005-06
and 2012-13 are presented in Figure 2.1.
The bounce back in overall growth rate of
Odisha’s GSDP in 2012-13 could overcome
the relatively sluggish growth of the State’s
economy during 2011-12. The slowdown of
Odisha’s growth in 2011-12 was mainly due
to the adversely impinged growth rates of the
agriculture sector and mining quarrying
sub-sector as compared to 2010-11. The State
experienced the natural shock of severe drought
in 2011-12 with sharp shortfall of average rainfall
and recorded the lowest crop production since
2004-05. The negative growth rate of agriculture
production in 2011-12 also adversely affected
the non-farm activities in the State. However,
the growth rates registered of manufacturing
(15.17 percent), construction (5.22 percent) and
public administration (6.11 percent) sub-sectors
in particular increased impressively by 5.74,
3.80 and 2.07 percentage points respectively in
2011-12 over 2010-11.
During the 11th Plan period, the banking
and insurance sub sector of the State grew
significantly with a robust annual average growth
rate of 17.94 percent followed by communication
(16.60 percent), manufacturing registered
14.00 percent, transport by other means 10.93
percent, trade, hotel restaurants 9.05 percent,
storage 9.04 percent and other services 8.52
percent etc. Annexure 2.1 shows Gross and Net
State Domestic Products both at current and
constant (2004-05) prices from 1950-51 to 201213. The year-wise and sub-sector-wise GSDP at
current and constant prices have been indicated
at Annexure 2.2 and Annexure 2.3 respectively.
11
Odisha’s Economy: A Macro Glance

40.
2.3 Broad Sectoral Decomposition
18194
10000
25584
23875
24134
15000
22846
20000
21640
20194
25000
22963
30000
17650
Per capita income is the single most important
cardinal measure of standard of living of the
people of the State. The rising trends of per
capita real Net State Domestic Product (NSDP)
for Odisha from 2004-05 to 2012-13 at 200405 prices are presented in Figure 2.2. The per
capita real NSDP of Odisha is estimated at
Rs.25,584 in the advance estimates of Odisha
for 2012-13 with a noticeable growth rate of
6.01 percent over 2011-12. By the end of the 11th
Plan in 2011-12, the per capita income of the
State was Rs.24,134 as compared to Rs. 20,194
in 2006-07, at the beginning of the 11th Plan,
thus registering a growth of 19.51 percent in
five years. The standard of living in the State has
risen over the years. However, it is still below the
national average since 1950-51, when Odisha’s
real per capita income was about 90 percent of
the national average. However, the State’s real
per capita income had begun to slide thereafter
and came down to about 61 percent of the
national average in 2002-03. This long-term
falling trend in real per capita income has not
only been arrested since 2004-05, but reversed
as well. The State’s per capita income has started
rising and the gap with the average national
per capita income has been reducing steadily.
The real per capita NSDP of Odisha in 201011 (provisional estimates) at 2004-05 prices
was Rs.23,875, which was higher than that of
Bihar, Uttar Pradesh, Assam, Madhya Pradesh,
Jharkhand and Manipur. The state wise real per
capita NSDP of states for 2010-11 is presented
at Figure 2.3. The year- wise per capita NSDP at
current and constant (2004-05) prices of Odisha
have been indicated at Annexure 2.1.
Figure 2.2: Per Capita Real NSDP of Odisha,
2004-05 to 2012-13
(In Rupees)
2.2 Relative Standards of Living
5000
0
-05 -06 6-07 7-08 8-09 9-10 0-11 1-12 2-13
04 005
0
0
0
0
1
1
1
20
20
2
20
20 20
20
20
20
Figure 2.3: Per Capita NSDP of States at 2004-05
Prices, 2010-11
Bihar
Uttar Pradesh
Assam
Madhya Pr.
Jharkhand
Manipur
Odisha
Rajasthan
Chhattisgarh
JK
West Bengal
Meghalaya
All India NNI
Mizoram
Tripura
Arunachal Pr.
Karnataka
Andhra Pr.
Nagaland
Punjab
Himachal Pr.
Uttarakhand
Kerala
Tamil Nadu
Gujarat
Haryana
Maharashtra
Sikkim
A N islands
Pondicherry
Chandigarh
Goa
Delhi
12102
17374
21406
22264
23168
23298
23875
26436
27156
27810
31673
34430
35993
36732
37216
37417
37874
40366
42628
44885
47106
48166
49873
51117
52708
59169
62729
64693
65210
79333
94417
102385
108876
0
20000
40000
60000
80000
100000
120000
(In Rupees)
While the growth rate of GDP denotes the index
of performance of the State’s economy, the
sectoral performance reflects the change in the
magnitude and composition of GDP of economy
over time. The change in the relative sectoral
shares in GDP manifests the structural change in
the economy. Typically, economic activities are
grouped into three broad sectors in India,viz.,
primary, secondary and tertiary. The primary
sector includes agriculture and allied sectors
like agriculture and animal husbandry, forestry
and fisheries, and mining and quarrying.
Manufacturing, electricity, gas, water supply and
construction sectors come under the secondary
sector, while the tertiary sector includes various
services including public administration.
12
Economic Survey, Odisha: 2012-13

41.
In this report, Odisha’s economy has been
classified as agriculture, industry and services
sectors as per RBI classification instead of the
traditional classification of primary, secondary
and tertiary. The agriculture sector includes
agriculture and animal husbandry, forestry and
fisheries. The industry sector includes mining
and quarrying, manufacturing, electricity, gas
and water supply. The service sector includes
construction, trade, hotels and restaurants,
transport, storage, communication, banking
and insurance, real estate, other services and
public administration. The revised classification
is more consistent with international practices.
Depending on the context, it should be clear
whether agriculture includes allied sectors or
refers to the agriculture sub-sector only.
Figure 2.4 gives the dynamics of the
composition of Odisha’s economy from
the year 2004-05 to 2012-13. It is clearly
becoming less agricultural, more industrial
and more service-oriented over time. In
2011-12, agriculture represented only 16.44
percent of Odisha’s GSDP. The service sector
and the industry sector represented 57.78
percent and 25.78 percent respectively.
During the year 2012-13, the share of the
service sector is expected to be 58.28 percent,
that of the industry sector 24.23 percent and the
agriculture sector 17.49 percent in real terms
at 2004-05 prices. Sectoral shares of GSDP in
2012-13 are presented in figure 2.5. As is true
for the Indian economy, in recent years the
service sector dominates the State economy,
constituting more than half the State’s GSDP.
2.4 Performance of Districts
Odisha also reports district incomes by way
of apportioning GSDP among different
districts. The Gross and Net District Domestic
Products (GDDP/NDDP) for all districts for the
period from 2004-05 to 2009-10 are given in
Annexure 2.10 through 2.15.
Figure 2.6 depicts per capita income of all
districts in 2009-10. Out of these, 10 districts
Figure 2.4: Dynamics of Composition of Odisha’s Economy 2004-05 to 2012-13
120
100
5
4-0
200
6
5-0
200
7
6-0
200
8
7-0
200
Service
9
8-0
200
Industry
200
Agriculture
13
Odisha’s Economy: A Macro Glance
58.28
57.78
24.22
25.78
2
1-1
201
17.49
0-11
201
0
16.44
56.86
18.08
24.74
0
9-1
18.50
19.07
25.07
5619
54.25
27.24
52.82
27.61
19.57
54.00
53.92
25.33
20.75
20
23.03
23.71
40
22.97
52.80
60
23.49
(In Percent)
80
3
2-1
201